Home Price-to-Income Ratio Comparison

Compare how home prices stack up against incomes in different cities. See how many "years of income" a typical home represents.

Based on city median home prices and household incomes

Compare Home Price-to-Income Ratios Across Cities

See how many "years of income" a typical home represents in any US city. Compare affordability between two cities or use your own numbers for a personalized view.

Price-to-Income Ratio

How many years of income a home costs

Affordability Category

Very Affordable to Unaffordable bands

City Comparison

Compare two cities side by side

Note: This tool uses city-level median home prices and household incomes. Actual home prices vary by neighborhood, property type, and condition. The price-to-income ratio is a general affordability indicator, not mortgage advice.

Last Updated: December 22, 2025

Understanding Home Price-to-Income Ratio Comparisons

The home price-to-income ratio is one of the most fundamental metrics for understanding housing affordability. It answers a simple but critical question: how many years of a typical household's income would it take to equal the price of a typical home in a given city? For anyone considering buying a home, relocating for work, or simply trying to understand why housing feels so expensive, this ratio provides essential context that raw home prices alone cannot offer.

For students studying economics, urban planning, or real estate, the price-to-income ratio demonstrates how affordability is measured across markets and time periods. It's a standardized way to compare cities with vastly different home prices and income levels—a $300,000 home in a city where median income is $100,000 is far more affordable than a $300,000 home where median income is $50,000, even though the sticker price is identical. Understanding this concept helps explain migration patterns, housing policy debates, and generational wealth dynamics.

For professionals considering relocation, this tool cuts through marketing narratives about "affordable" housing markets. A city might tout lower home prices than your current location, but if local incomes are also lower, you might not actually gain purchasing power. By comparing price-to-income ratios rather than raw prices, you get a clearer picture of how far your earning potential will stretch in different metros. This is especially valuable for remote workers who can live anywhere—you can identify cities where your income buys significantly more housing than average local residents can afford.

For everyday people trying to figure out whether homeownership is realistic, this ratio provides a reality check grounded in data rather than feelings. When your parents bought their first home in the 1980s, the national price-to-income ratio was around 3×. Today, many metros exceed 6×, 8×, or even 12×. Understanding these numbers helps you set realistic expectations, identify genuinely affordable markets, and make informed decisions about whether to buy, rent, or relocate. It's not about being pessimistic—it's about having the information you need to build a plan that actually works.

Understanding the Basics

What Is the Price-to-Income Ratio?

The home price-to-income ratio divides the median home price in a city by the median household income. If the median home costs $400,000 and the median household earns $80,000 per year, the ratio is 5.0× (often expressed simply as "5×"). This means the typical home costs five years of the typical household's gross income. The ratio uses gross income (before taxes and deductions) and total home price (not down payment), providing a standardized comparison point across all markets.

This metric has been used by economists, housing researchers, and real estate analysts for decades because it normalizes affordability across markets. A $200,000 home might sound cheap compared to a $600,000 home, but if the first city has $40,000 median income (5× ratio) and the second has $150,000 median income (4× ratio), the expensive city is actually more affordable relative to local earning power.

Historical Affordability Benchmarks

Historically, a price-to-income ratio of approximately 3× was considered the benchmark for "affordable" housing. This rule of thumb emerged from traditional mortgage lending standards: with a 20% down payment and a 30-year mortgage at reasonable interest rates, a household could comfortably afford a home priced at about three times their annual income while keeping housing costs below 30% of monthly income.

In the United States during the 1970s and 1980s, the national price-to-income ratio hovered around 3× to 3.5×. By 2020, the national average had climbed to approximately 4.5×, and by 2024, many markets exceed 5× or 6×. Some coastal metros like San Francisco, San Jose, and Los Angeles have ratios exceeding 10×. This shift explains why younger generations face significantly greater barriers to homeownership than their parents did—it's not just about home prices rising, it's about home prices rising faster than incomes.

Affordability Categories Explained

Housing markets are commonly grouped into affordability categories based on their price-to-income ratio. While exact boundaries vary by researcher, common thresholds include: Very Affordable (under 3×) where traditional lending rules work well and most working households can qualify; Affordable (3× to 4×) representing the historical norm where homeownership remains accessible to median-income households with disciplined saving; Stretched (4× to 5×) where buyers typically need above-median income, larger down payments, or help from family; and Unaffordable (above 5×) where homeownership becomes difficult for typical households without substantial existing wealth or dual high incomes.

These categories aren't perfect—they don't account for interest rates, taxes, or individual circumstances—but they provide useful shorthand for comparing markets. A city with a 3.2× ratio operates very differently than one with a 7.5× ratio, regardless of what the raw home prices look like.

Median Home Price vs. Mean Home Price

This tool uses median home prices rather than mean (average) prices. The median is the middle value—half of homes cost more, half cost less. This matters because housing markets are skewed by luxury properties. A handful of multi-million-dollar homes can dramatically pull up the mean price while barely affecting the median. The median better represents what a "typical" home costs for a "typical" buyer.

Similarly, we use median household income rather than mean income. High earners pull up the average, but the median reflects what a typical household actually earns. Using medians for both values produces a ratio that genuinely represents the affordability challenge facing ordinary home buyers, not one distorted by outliers at either extreme.

What the Ratio Doesn't Capture

The price-to-income ratio is a powerful but incomplete measure. It doesn't account for mortgage interest rates (a 3% rate versus 7% rate dramatically changes monthly payments even for the same ratio); property taxes (which vary from under 0.5% annually in some states to over 2% in others); down payment requirements (20% down on a 5× home requires saving a full year's income); maintenance costs and HOA fees; individual debt loads; or the quality of housing stock. A city with a 4× ratio and low property taxes may be more accessible than one with a 3.5× ratio and high taxes. Use this metric as a starting point for comparison, not the final word on affordability.

Step-by-Step Guide: How to Use This Tool

Step 1: Enter Your Primary City

Start by entering the name of the city you want to analyze. Type the city name and select the corresponding state from the dropdown. The tool includes data for major US metropolitan areas. If your specific city isn't available, try the nearest major metro—smaller suburbs typically share affordability characteristics with their anchor city.

Step 2: Add Comparison Cities (Optional)

For the most useful analysis, add one or more comparison cities. This lets you see how affordability differs across markets you're considering. If you're weighing job offers in different cities, comparing your current city with potential destinations reveals whether you'd gain or lose purchasing power by moving. The tool displays results side-by-side for easy comparison.

Step 3: Review the Key Metrics

After submitting, review the displayed metrics including the price-to-income ratio, median home price, median household income, and affordability category. Pay attention to the ratio itself rather than raw numbers—a city with $500,000 homes and $125,000 median income (4× ratio) is more affordable than one with $300,000 homes and $60,000 income (5× ratio), even though the first city's homes cost more.

Step 4: Understand the Affordability Category

The tool assigns each city an affordability category (Very Affordable, Affordable, Stretched, or Unaffordable) based on the ratio thresholds. This provides quick context: if a city shows "Unaffordable," you know that typical households there struggle with homeownership, and you'll likely need above-median income or significant savings to buy. If it shows "Affordable," traditional lending rules apply and median-income households can reasonably purchase.

Step 5: Factor In Your Personal Situation

The tool shows city-wide medians, but your situation may differ. If you earn above the local median income, a "Stretched" market might be comfortable for you. If you have significant debt or expect income changes, even an "Affordable" market requires careful planning. Use the ratio as a baseline, then adjust your expectations based on your actual income, savings, and financial obligations.

Step 6: Research Additional Factors

Use the ratio as a screening tool, then dig deeper into cities that interest you. Research current mortgage rates and how they affect monthly payments, property tax rates in specific counties, insurance costs (especially in flood or fire zones), HOA fees in neighborhoods you're considering, and income tax rates that affect your take-home pay. The ratio gets you started; additional research helps you finalize decisions.

Formulas and Behind-the-Scenes Logic

Basic Price-to-Income Ratio Formula

The core calculation is straightforward:

Price-to-Income Ratio = Median Home Price ÷ Median Household Income

For example, if the median home price is $450,000 and median household income is $90,000, the ratio is $450,000 ÷ $90,000 = 5.0×. This means the typical home costs five times the typical household's annual gross income.

Affordability Category Assignment

The tool assigns affordability categories based on ratio thresholds:

If Ratio < 3.0 → "Very Affordable"

If Ratio ≥ 3.0 AND < 4.0 → "Affordable"

If Ratio ≥ 4.0 AND < 5.0 → "Stretched"

If Ratio ≥ 5.0 → "Unaffordable"

Monthly Payment Estimation (Reference)

While not the primary output, understanding how ratios translate to payments helps contextualize the numbers:

Loan Amount = Home Price × (1 - Down Payment %)

Monthly Payment = Loan Amount × [r(1+r)^n] / [(1+r)^n - 1]

Where r = monthly interest rate, n = total payments (typically 360 for 30-year mortgage)

Housing Cost Ratio = (Monthly Payment × 12) / Annual Income

Traditional lending guidelines suggest housing costs (principal, interest, taxes, insurance) should not exceed 28-30% of gross income. A 3× price-to-income ratio with 20% down and moderate interest rates typically meets this threshold. Higher ratios require larger down payments, lower rates, or acceptance of higher cost burdens.

Worked Example: Austin vs. Cleveland

Let's compare two cities with different affordability profiles:

Austin, Texas:

Median Home Price: $550,000
Median Household Income: $85,000
Ratio: $550,000 ÷ $85,000 = 6.47×
Category: Unaffordable

Cleveland, Ohio:

Median Home Price: $180,000
Median Household Income: $52,000
Ratio: $180,000 ÷ $52,000 = 3.46×
Category: Affordable

Analysis: Despite Austin's higher incomes, housing there costs nearly twice as many years of income as Cleveland. A household earning the median income in Cleveland can realistically afford the median home; in Austin, they would need nearly double the typical down payment or significantly above-median income to achieve the same.

Practical Use Cases

Student Research: Understanding Regional Economic Disparities

An economics student researching housing inequality uses this tool to compare price-to-income ratios across different regions. They discover that while Rust Belt cities like Detroit (2.8×) and Pittsburgh (3.2×) remain affordable by historical standards, Sun Belt growth cities like Phoenix (5.8×) and Denver (6.2×) have stretched far beyond traditional benchmarks. Coastal metros like San Francisco (12×) and San Jose (11×) are in a separate category entirely. This data supports their thesis on how geographic arbitrage drives migration patterns and contributes to their understanding of wealth concentration in real estate.

Remote Worker: Maximizing Housing Purchasing Power

A software engineer earning $150,000 while working remotely from San Francisco wants to know where their salary would stretch furthest. Currently, their income is 1.25× the local median, but the 12× price-to-income ratio means a median home would cost 10 years of their salary. Using the tool, they compare cities where their income would be 2× or 3× the local median. In Raleigh (4.5× ratio), their salary is nearly 2× median income, meaning they could afford a well-above-median home. In Indianapolis (3.1× ratio), their salary is 2.5× median, and the median home costs just 1.2 years of their income. This analysis helps them identify markets where their remote salary creates significant purchasing power advantage.

Young Professional: Setting Realistic Homeownership Goals

A 28-year-old marketing manager in Boston (6.5× ratio) feels frustrated that homeownership seems impossible despite earning $75,000—above the national median. The tool helps them understand their situation objectively: at 6.5× ratio, even median-income households in Boston face major affordability barriers. With 10% saved toward a down payment, they'd need to save another 3-4 years to reach 20% down on a median home. They explore alternatives: nearby Providence (4.2× ratio) would let them buy sooner while still commuting occasionally, or they could target a below-median home in a Boston suburb. The data transforms their frustration into an actionable plan with realistic timelines.

Family: Evaluating Relocation for Better Housing

A family of four in Los Angeles (9× ratio) rents a two-bedroom apartment and dreams of owning a home with a yard for their kids. With combined income of $120,000, they earn above the local median but still can't afford to buy. They use the tool to compare options: San Antonio (3.8×) and Houston (4.1×) offer affordable markets with good job prospects in their industry. They calculate that selling their small retirement fund and relocating could turn an impossible dream into a near-term reality. The ratio comparison helps them weigh the trade-offs: leaving family and friends for homeownership, or staying and accepting permanent renter status.

Retiree: Downsizing and Relocating for Better Value

A retired couple owns their home outright in a Seattle suburb (5.5× ratio) where their home is worth $650,000. They want to downsize and free up cash for retirement. Using the tool, they find that selling and moving to Tucson (4.2× ratio) or Albuquerque (3.9× ratio) would let them buy a comparable or better home for $250,000-$300,000, pocketing $350,000+ for retirement income. The price-to-income ratio matters less for them (they're not earning), but comparing absolute prices between markets with different ratios helps them understand relative value and stretch their housing equity further.

HR Professional: Evaluating Relocation Packages

An HR director needs to create relocation packages for employees moving between offices. Using price-to-income ratios, they can objectively assess housing affordability differences. Moving an employee from the Dallas office (4.3× ratio) to the San Francisco office (12× ratio) requires significant compensation adjustment—not just for higher nominal prices, but because housing consumes a much larger share of income. The tool helps them calculate fair cost-of-living adjustments and housing allowances that maintain employees' purchasing power rather than just matching raw salary increases to price differences.

Common Mistakes to Avoid

Comparing Raw Prices Instead of Ratios

The most common mistake is focusing on absolute home prices rather than price-to-income ratios. A $250,000 home sounds more affordable than a $400,000 home, but if the first city has $45,000 median income (5.6× ratio) and the second has $100,000 median income (4× ratio), the more expensive home is actually easier to afford relative to local earning potential. Always compare ratios when evaluating affordability across different markets.

Ignoring Interest Rate Impact

The price-to-income ratio doesn't change when interest rates change, but your monthly payment absolutely does. A 4× ratio at 3% interest translates to very different monthly costs than the same 4× ratio at 7% interest. When rates are high, even markets with historically "affordable" ratios can create payment burdens that exceed recommended thresholds. Consider current rates alongside ratios when making timing decisions about home purchases.

Assuming Your Income Matches the Median

The ratio uses median household income, but your income may be higher or lower. If you earn 1.5× the median income in a city, a 5× ratio market effectively becomes a 3.3× ratio for you personally. Conversely, if you earn below median, even "affordable" markets become stretched. Calculate your personal ratio by dividing target home prices by your actual income, and use the city-wide median as context rather than your personal benchmark.

Overlooking Neighborhood Variation

City-wide medians mask enormous variation between neighborhoods. A city with a 5× overall ratio might have neighborhoods ranging from 3× to 12×. Expensive downtown condos and luxury suburbs pull up the median while working-class neighborhoods may remain accessible. After using city-level ratios to screen markets, research specific neighborhoods to find pockets that match your budget and preferences.

Forgetting About Total Housing Costs

The ratio measures purchase price versus income but not ongoing costs. Property taxes range from under 0.5% (Hawaii) to over 2.4% (New Jersey) of home value annually. A $300,000 home in New Jersey costs $7,200/year in property taxes; the same value in Hawaii costs under $1,500. Insurance, utilities, and HOA fees also vary dramatically. Factor these ongoing costs into your true affordability analysis, especially when comparing across state lines.

Using Stale Data for Fast-Moving Markets

Housing markets can shift quickly, especially in high-growth areas. The median home prices in this tool are based on recent data but may lag current conditions by several months. In rapidly appreciating markets, actual prices may be 5-10% higher than displayed; in cooling markets, they may be lower. Use the ratios for general comparison and relative positioning, but verify current prices when making actual purchase decisions.

Not Accounting for Income Tax Differences

The ratio uses gross income, but you pay for housing with after-tax dollars. Moving from Texas (no state income tax) to California (up to 13.3% state income tax) means less take-home pay even at the same gross salary. A 5× ratio in a no-tax state may be easier to manage than a 5× ratio in a high-tax state. Consider net income, not just gross income, when comparing affordability across states with different tax structures.

Advanced Tips & Strategies

Calculate Your Personal Price-to-Income Ratio

Don't just use city medians—calculate your actual ratio. Divide your target home price by your household's gross annual income. If you're targeting a $400,000 home on $120,000 income, your personal ratio is 3.3×, which falls in the "Affordable" category regardless of what the city-wide median shows. This personal calculation is more relevant for your financial planning than city averages.

Track Ratio Trends Over Time

A city's current ratio tells you about today; the trend tells you about tomorrow. Markets where ratios have expanded rapidly (from 4× to 6× in five years) may face correction risk or continued affordability pressure. Markets where ratios have been stable suggest sustainable growth. Research historical ratios for cities you're considering to understand whether current conditions are typical or anomalous.

Use Ratios to Identify Undervalued Markets

Some cities have low ratios despite strong fundamentals—growing economies, improving amenities, increasing population. These may be undervalued markets where prices could appreciate. Conversely, high ratios in cities with weakening economies may signal overvaluation and potential price correction. Compare ratios alongside economic indicators like job growth, population trends, and industry diversification.

Factor In Career Trajectory When Comparing Cities

Current income is just a snapshot. If you're early in your career in a high-growth field, a city with a 6× ratio but strong income growth potential might become a 4× ratio for you personally within five years. Compare cities not just on current ratios but on income trajectories in your industry. A tech worker might find San Jose's 11× ratio manageable if their expected income growth is 15% annually.

Consider "Sacrifice Ratio" for Accelerated Savings

If you're willing to live frugally in a high-income city while saving aggressively, you can accumulate a down payment faster than in a low-income city. Someone earning $150,000 in San Francisco saving 30% of income accumulates $45,000/year; someone earning $60,000 in Cleveland saving the same percentage accumulates $18,000/year. The SF resident can save a 20% down payment on a Cleveland home ($36,000) in under a year, then relocate. Run the numbers on "earn here, buy there" strategies.

Use Ratio Differences to Negotiate Relocation Packages

When negotiating a job offer that requires relocation, use price-to-income ratios to justify housing-related compensation. If you're moving from a 3× ratio market to a 6× ratio market, you can demonstrate objectively that housing will consume twice as much of your income unless the salary increase compensates. This data-driven approach is more persuasive than simply claiming "it's expensive there."

Combine with Other City Comparison Tools

Price-to-income ratio is one piece of the puzzle. Combine it with cost of living indices (which include rent, groceries, transportation), quality of life scores, crime indices, climate comfort ratings, and tax burden comparisons. A city with an excellent 3× ratio but high crime or poor weather might not be the right choice. Use multiple tools to build a complete picture before making relocation decisions.

Sources & References

The data and methodologies used in this tool are informed by authoritative sources on housing markets and affordability metrics:

•U.S. Census Bureau - Housing Data: census.gov/topics/housing - Official data on median home values and household income by metropolitan area.
•National Association of Realtors (NAR): nar.realtor/research-and-statistics - Housing market statistics, median home prices, and affordability indices.
•Federal Reserve Economic Data (FRED): fred.stlouisfed.org - Historical housing price indices and income data for economic analysis.
•Zillow Research: zillow.com/research - Home value indices and housing market trends by metro area.
•Joint Center for Housing Studies - Harvard: jchs.harvard.edu - Research on housing affordability, homeownership trends, and price-to-income analysis.

Reviewed by travel & finance professionals

Last updated: December 2025

Based on hospitality industry data

For Educational Purposes Only - Not Professional Advice

This calculator provides estimates for informational and educational purposes only. It does not constitute travel, financial, legal, or professional advice. Results are based on the information you provide and general guidelines that may not account for your individual circumstances. Costs, fees, and regulations change frequently. Always consult with a qualified travel agent or booking specialist for advice specific to your situation. Information should be verified with official AHLA.com sources.

Frequently Asked Questions

Common questions about the Home Price-to-Income Ratio Comparison tool.

What is a home price-to-income ratio?

The home price-to-income ratio is a simple measure of housing affordability. It divides the median home price by the median annual household income. A ratio of 5× means a typical home costs 5 times the typical annual income. Lower ratios generally indicate more affordable housing markets.

What do 'stretched' or 'unaffordable' mean here?

These are affordability categories based on the ratio: Very Affordable (<3×) means homes cost less than 3 years of income. Affordable (3-4×) is the traditional benchmark. Stretched (4-5×) suggests buyers may need larger down payments or above-median incomes. Unaffordable (5×+) indicates significant barriers to homeownership for typical households.

Where do these home price and income numbers come from?

The tool uses city-level median home prices and household incomes based on census and survey data. This data typically lags current market conditions by 1-2 years. It represents city-wide medians, which can mask significant neighborhood variation.

Is this mortgage, investment, or legal advice?

No. This tool provides general informational comparisons only. It is NOT mortgage advice (doesn't account for rates, terms, or qualification), NOT investment advice (doesn't predict appreciation or returns), and NOT legal advice. Consult qualified professionals for important financial decisions.

How do my own numbers change the picture vs city medians?

If you enter your own target home price and income, the tool calculates your personal price-to-income ratio. This can be higher or lower than the city median depending on your situation. For example, if you earn above the median income but are targeting a median-priced home, your personal ratio would be better than the city average.

Is a 6× ratio high?

Historically, a 3× ratio was considered affordable. A 6× ratio would be considered 'unaffordable' by traditional standards—homes cost 6 years of income. However, many expensive metros (San Francisco, New York, Los Angeles) now have ratios of 8× or higher. What's 'normal' depends on the local market.

Why doesn't this account for mortgage rates?

The price-to-income ratio is a simple snapshot comparison that's been used for decades. It doesn't include mortgage rates because rates change frequently and affect monthly payments, not the underlying ratio. A comprehensive affordability analysis would include rates, down payment, taxes, and insurance.

Can I use this to decide where to buy a home?

Use this as one data point among many. The ratio helps compare relative affordability between cities, but doesn't capture neighborhood variation, job markets, quality of life, or your personal financial situation. For major decisions, research local markets, get mortgage pre-approval, and work with local professionals.

What if my city isn't in the database?

If your city isn't found, the tool uses U.S. average values as a fallback. You'll see a 'Using defaults' label. For accurate results, enter your own home price and income values in personal mode, or choose a nearby city that is in the database.

How should I interpret comparing two cities?

When comparing cities, look at both the ratio and the absolute numbers. A city might have a lower ratio but higher absolute prices if incomes are also high. Consider tradeoffs: a city with a 4× ratio and $80k median income is different from one with 4× ratio and $50k income—same ratio, different lifestyle.

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